Electronic invoicing in Latin America: A challenge for American companies

Electronic invoicing in Latin America: A challenge for American companies

03/04/2018

The consolidated economic relationship between the United States and Latin America has always been favored by geographical proximity and the economic influence exerted between both areas. Naturally, their business relationships are very connected and must adapt from one country to the next. An important peculiarity of the Latin American market is that it is the international area in which the implementation of electronic invoicing has grown the most in recent years.

The electronic invoice has a series of legal and technical requirements that differ from one country to another. However, this fact does not have to be an obstacle for the economic operations of American multinational companies with a presence in Latin America. There are technological solutions such as EDICOM’s Global e-Invoicing Platform, which is capable of adapting to the information systems of North American companies and the requirements in each of these countries so that international invoicing projects can be completed successfully and so that they are completed in accordance with the legal and fiscal requirements in Mexico, Brazil, Chile, Costa Rica or Colombia.

The rise of electronic invoicing in Latin America

Latin America is the most advanced region in terms of the implementation of electronic invoicing. There, this system has become a tool to improve fiscal control and mitigate high tax evasion rates. At the beginning of the 21st century, it was used by some LATAM countries. Nowadays, electronic invoicing is part of the normal procedure in the commercial relations of more and more countries such as Mexico, Brazil, Chile and Guatemala where it is used in practically 100% of economic transactions.

Some countries on the American continent have been at the forefront of this technology for years with Mexico and Brazil being the most advanced countries in terms of legislation for the electronic invoice. Tax authorities in Central and South America continue using these consolidated models and are adapting them to their own fiscal model, which is already happening in Costa Rica and Colombia. The success of these models is encouraging and justifying their expansion to large extent.

The benefits of electronic invoicing for companies include cost reduction and improvements for business management. Benefits for administration include the ability to avoid tax fraud and control of economic transactions. A larger part of the countries in Latin America have established a calendar to implement it in the medium term and to definitively unseat ordinary invoicing. 

How to achieve fiscal compliance in all countries

The growing expansion of electronic invoicing in LATAM can be understood as a problem for those North American multinational companies with a presence in different countries in this area since each one of them is governed by different regulations and legal and technical requirements. In addition, the growing development of a shared services center in key countries in Central America such as Costa Rica or Panama involves knowledge and technical and legal adaptation to the needs and obligations of the region.

factura LATAM

Fortunately, adapting to the characteristics required by each country is easy to solve if you have a provider capable of offering up to date services in accordance with current regulations on electronic invoicing in each one of them.

EDICOM, an international company with a presence throughout Latin America has more tan 20 years of experience with technological solutions in regards to the integration and transmission of data between companies. It can provide North American companies with a centralized systematic service capable of adapting their computer systems to LATAM’s electronic invoice.

EDICOM has developed an integral solution designed especially for multinational companies. It is a B2B2G electronic communications platform with Electronic Invoice and global VAT compliance capabilities.  

EDICOM’s Global e-Invoicing Platform adapts to the regulations of each country

The Global e-Invoicing platform provides a centralized service to North American companies operating in Latin America that adapts to the legal and technical standards and specificities defined in the electronic invoicing system of each country.

These are the main advantages of EDICOM’s Global Platform:

Automation. The solution is integrated with the main ERP systems in the market to automate VAT declarations and any other tax communications.

Centralization. It is a platform suitable for tax compliance in more than 60 countries around the world, so it is possible to centralize all procedures in a single solution.

Internationalization. EDICOM’s platform is not only prepared for the electronic VAT declaration but also for electronic invoicing and any other commercial or fiscal communication.

Compliance.  Sending information that complies with the specific technical and legal requirements of each country to the tax authority is the provider’s responsibility. By outsourcing and automating this process in a single platform, the client will gain flexibility and agility and will have the guarantee that their information arrives in the correct way to the public body in question.

Security and Availability. EDICOM's platform has different certifications such as ISO 27001, ISO20000, ISAE 3402 and TIER II DESIGN. The commitment EDICOM made to all of its customers through these certifications offers the maximum security guarantees and maintains the SLA the company committed to that establishes a minimum solution availability of 99.9%.

Get more information about the electronic invoice and EDICOM’s Global e-Invoicing Platform.

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e-Invoicing Platform

A single solution that lets you issue electronic invoices in any country worldwide

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